Wednesday, 18th June 2008 (451 views)

Eldorado Gold Corporation and Frontier Pacific Mining Corporation have signed a definitive support agreement together.

The announcement follows the decision by Frontier to accept Eldorado's new offer to buy all of the outstanding common shares in Frontier.

The original offer was 0.1220 Eldorado common shares and C$0.0001 (£0.00005). In the new deal, Frontier shareholders will now receive one exchange receipt for each common share.

Each receipt will give a shareholder 0.008 common shares of Eldorado.

Paul N Wright, Eldorado's president and chief executive officer said: "We believe that the modest additional dilution to our shareholders would be well worth it in the event that we are successful in achieving earlier permitting than is expected."

Common shares of Frontier - totalling 71,782,616 - are now subject to lock-up agreements with Eldorado.

Eldorado is a gold producing company with businesses in China, Turkey and Brazil. Frontier is based in Vancouver and has gold projects in South America and Europe.

 

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